SECURE ACT: Eligible Designated Beneficiaries

Just want to confirm I’m on the right track. Regarding the “any other individual who is not more than 10 years younger than the deceased IRA owner” allowance.

If you die, you can leave your IRA to your sister, who might be just a few years younger than you, and she can stretch it over her life? And you can leave it to anyone older than you, and they can stretch it over their life?



Yes, as long as she is not more than 10 years younger than the decedent she is an eligible designated beneficiary (EDB) and can stretch the the inherited IRA over her remaining life expectancy, same as pre Secure.  Presumably, if the decedent named two siblings and only one of them was an EDB, separate inherited IRAs could be created by the deadline and the EDB would use LE and the other would be subject to the 10 year rule.

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